New Delhi: Ratings agency ICRA expects India’s domestic air passenger growth to be at 4.5% in the current fiscal, the lowest in six years, as issues around Boeing 737 Max and Airbus A320neo hit capacity addition, and due to Indian airlines’ focus on expanding on the international routes.
“A series of events during the current fiscal such as discontinuation of operations of Jet Airways, grounding of the Boeing 737 Max aircraft… and issues with the Pratt & Whitney engines for Airbus 320 Neos have impacted the industry’s capacity and thus passenger growth. Moreover, many domestic airlines are focussing on expanding on the international routes,” ICRA said in a statement.
The weak growth for 2019-20 follows six years of double-digit increase in domestic passenger traffic for the aviation industry, and the weak growth has led ICRA to maintain its year-end negative outlook on the airline industry.
